As of January 1, Warbler Corporation has a deficit in accumulated E & P of $150,000. For the year, current E & P (accrued ratably) is $260,000 (prior to any distributions). On July 1, Warbler Corporation distributes $295,000 to its sole shareholder. The amount of the distribution that is a dividend is:
A) $10,000.
B) $110,000.
C) $260,000.
D) $295,000.
E) None of the above.

Question

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The Answer of As of January 1, Warbler Corporation has a deficit in accumulated E & P of $150,000. For the year, current E & P (accrued ratably) is $260,000 (prior to any distributions). On July 1, Warbler Corporation distributes $295,000 to its sole shareholder. The amount of the distribution that is a dividend is:
A) $10,000.
B) $110,000.
C) $260,000.
D) $295,000.
E) None of the above.

As of January 1, Warbler Corporation Has a Deficit in Accumulated